{"release":{"id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","published":"2026-11-01T16:41:30Z","pinned":false},"limits":{"coverage":{"history":"from:2023-02-14","held_since":"2023-02-14","gaps":[],"covered":["2016/2251 — RTS — Risk-mitigation techniques for OTC derivative contracts [in force] L2"],"not_covered":["national guidance","court decisions"]},"freshness":{"release_id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","release_published":"2026-11-01T16:41:30Z","checked_at":"2026-10-20","checked_against":"EUR-Lex"},"truncation":null,"failures":[],"incomplete":[]},"page":{"path":"/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts/articles/14","url":"https://www.headlesslaw.com/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts/articles/14","title":"Article 14 — General requirements","family":"l2_unit_view","work_id":"spaces/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts","view_of":"/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts","status":"in_force","force_status":"in_force","date_state":"current","requested_date":null,"as_of":"2026-11-01","applies_from":null,"application":null,"version_label":"Consolidated version of 14 February 2023","check":{"against":"EUR-Lex","on":"2026-10-20"},"check_result":"matched","official_url":"https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02016R2251-20230214","valid_from":"2017-01-04","valid_until":null,"content_id":"f56b629210751cbc","versions":["2017-01-04"],"version_url":"https://www.headlesslaw.com/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts/articles/14/versions/2023-02-14","revision_url":"https://www.headlesslaw.com/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts/articles/14/versions/2023-02-14/rev/f56b629210751cbc","versions_url":"https://www.headlesslaw.com/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts/articles/14/versions","relations_url":"https://www.headlesslaw.com/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts/articles/14/relations","act_url":"https://www.headlesslaw.com/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts#art-14","source_line":"Commission Delegated Regulation (EU) 2016/2251 · binding · OJ L 340, 15.12.2016 · dated 4 Oct 2016 [in force]","attribution":{"prepared_by":"European Commission","published_by":"Publications Office of the EU","published_in":"Official Journal of the European Union","document_type":"delegated_regulation","legal_nature":"binding_adopted","addressees":"not stated in the document","dates":{"document_date":"2016-10-04","entry_into_force":"2017-01-04","locators":{"document_date":"CELLAR 32016R2251 work_date_document","entry_into_force":"CELLAR 32016R2251 resource_legal_date_entry-into-force (earliest)"}},"adoption":null},"context":{"act":{"work_id":"spaces/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts","path":"/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts","name":"Commission Delegated Regulation (EU) 2016/2251","number":"2016/2251","celex":"32016R2251","title_official":"COMMISSION DELEGATED REGULATION (EU) 2016/2251 of 4 October 2016 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories with regard to regulatory technical standards for risk-mitigation techniques for OTC derivative contracts not cleared by a central counterparty (Text with EEA relevance)","document_date":"2016-10-04"},"position":{"kind":"article","key":"14","index":14,"articles":42,"annexes":4},"prev":{"path":"/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts/articles/13","key":"13","title":"Article 13 — Provision of initial margin"},"next":{"path":"/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts/articles/15","key":"15","title":"Article 15 — Confidence interval and MPOR"},"act_anchor":"#art-14"}},"provenance":{"official_url":"https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02016R2251-20230214","check":{"result":"matched","checked_at":"2026-10-20","against":"EUR-Lex"},"repo_path":"spaces/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts.md","unit_text_sha256":"641df1421a949f0f0265ccf2c0f4d714b16f53dd74aa7b1ce93d4ed60c919823","note":"the unit is a byte-exact part of the act page, whose check record covers it"},"unit":{"locator":"spaces/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts/art-14","kind":"article","key":"14","heading":"Article 14 — General requirements","text":"## <a id=\"art-14\"></a>Article 14 — General requirements\n\n1. <a id=\"art-14-p-1\"></a>Where a counterparty uses an initial margin model, that model may be developed by any of, or both, counterparties or by a third-party agent.\n\n    Where a counterparty uses an initial margin model developed by a third-party agent, the counterparty shall remain responsible for ensuring that that model complies with the requirements referred to in this Section.\n\n2. <a id=\"art-14-p-2\"></a>Initial margin models shall be developed in a way that captures all the significant risks arising from entering into the non-centrally cleared OTC derivative contracts included in the netting set, including the nature, scale, and complexity of those risks and shall meet the following requirements:\n\n    <a id=\"art-14-p-2-a\"></a>**(a)** the model incorporates risk factors corresponding to the individual currencies in which those contracts in the netting set are denominated;\n\n    <a id=\"art-14-p-2-b\"></a>**(b)** the model incorporates interest rate risk factors corresponding to the individual currencies in which those contracts are denominated;\n\n    <a id=\"art-14-p-2-c\"></a>**(c)** the yield curve is divided into a minimum of six maturity buckets for exposures to interest-rate risk in the major currencies and markets;\n\n    <a id=\"art-14-p-2-d\"></a>**(d)** the model captures the risk of movements between different yield curves and between different maturity buckets;\n\n    <a id=\"art-14-p-2-e\"></a>**(e)** the model incorporates separate risk factors at least for each equity, equity index, commodity or commodity index which is significant for those contracts;\n\n    <a id=\"art-14-p-2-f\"></a>**(f)** the model captures the risk arising from less liquid positions and positions with limited price transparency within realistic market scenarios;\n\n    <a id=\"art-14-p-2-g\"></a>**(g)** the model captures the risk, otherwise not captured by other features of the model, arising from derivative contracts where the underlying asset class is credit;\n\n    <a id=\"art-14-p-2-h\"></a>**(h)** the model captures the risk of movements between similar, but not identical, underlying risk factors and the exposure to changes in values arising from maturity mismatches;\n\n    <a id=\"art-14-p-2-i\"></a>**(i)** the model captures main non-linear dependencies;\n\n    <a id=\"art-14-p-2-j\"></a>**(j)** the model incorporates methodologies used for back-testing which include statistical tests of the model's performance;\n\n    <a id=\"art-14-p-2-k\"></a>**(k)** the model determines which events trigger a model change, calibration or other remedial action.\n\n3. <a id=\"art-14-p-3\"></a>The risk management procedures referred to in Article 2(1) shall ensure that the performance of the model is monitored on a continuous basis including by back-testing the model at least every 3 months.\n\n    For the purposes of the first subparagraph, back testing shall include a comparison between the values produced by the model and the realised market values of the non-centrally cleared OTC derivative contracts in the netting set.\n\n4. <a id=\"art-14-p-4\"></a>The risk management procedures referred to in Article 2(1) shall outline the methodologies used for undertaking back-testing, including statistical tests of performance.\n\n5. <a id=\"art-14-p-5\"></a>The risk management procedures referred to in Article 2(1) shall describe what results of the back-testing would lead to a model change, recalibration or other remediation action.\n\n6. <a id=\"art-14-p-6\"></a>The risk management procedures referred to in Article 2(1) shall ensure that counterparties retain records of the results of the back-testing referred to in paragraph 3 of this Article.\n\n7. <a id=\"art-14-p-7\"></a>Counterparties shall provide all the information necessary to explain the calculation of a given value of the initial margin model to the other counterparty in a way that a knowledgeable third party would be able to verify that calculation.\n\n8. <a id=\"art-14-p-8\"></a>The initial margin model shall reflect parameter uncertainty, correlation, basis risk and data quality in a prudent manner.\n\n","marks":[],"text_hash":"641df1421a949f0f0265ccf2c0f4d714b16f53dd74aa7b1ce93d4ed60c919823","revision":1}}